Diamond Equity Research Releases Update Note on BioHarvest Sciences Inc. (NASDAQ: BHST)
New York, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released an Update Note on BioHarvest Sciences Inc. (NASDAQ:BHST). The update note includes detailed information on BioHarvest Sciences' financial results, operational updates, business model, management commentary, valuation, and risks.
The full update note is available below.
BioHarvest Sciences August 2025 Update Note
Highlights from the note include:
- Revenue Increased 41% in Q2 2025 as Core and New Products Deliver Balanced Growth: In Q2 2025, the company delivered strong top-line growth, with revenues rising 41% year-over-year to $8.5 million, in line with management's guidance. Growth was driven primarily by the continued success of the core VINIA capsule business, which accounted for 80% of total revenue growth, and a 100% increase in new products revenue, contributing the remaining 20% growth. Gross Profit grew 65% to $5.1 million, with margins expanding by 800 basis points to 60%, benefiting from manufacturing scale efficiencies and improving yields. Operating expenses increased by 44% to $6.9 million, reflecting higher marketing investments, the buildout of the Health Pro Affiliates program, increased costs in the CDMO division, and a 61% rise in general and administrative (G&A) expenses due to one-time NASDAQ compliance-related costs. Net loss widened to $4.0 million from $0.7 million in Q2 2024, largely due to non-cash foreign exchange-related finance expenses, while adjusted EBITDA loss remained relatively flat at $1.3 million. The company ended the quarter with $3.7 million in cash, up from $2.4 million at year-end 2024.
- Expanding VINIA® User Base, Advancing CDMO Projects, and Launching New Growth Initiatives for 2H 2025: BioHarvest Sciences closed Q2 2025 with 65,000 active U.S. VINIA® users and over $60 million in cumulative revenue since the U.S. launch in May 2021, delivering balanced growth driven 80% by the core VINIA® capsule business (up 28% year-over-year) and 20% by new products, which grew 100%. The quarter saw the launch of the Informed Sport-certified VINIA® Daily Chews 2X Formula for athletes and active lifestyles, the signing of a new Stage 1 CDMO contract to develop a plant-based fragrance compound from a threatened species, and the advancement of a Nasdaq-listed pharma CDMO project to Stage 2, validating the versatility of the Botanical Synthesis platform. Looking ahead, management guided for Q3 2025 revenues of at least $9.1 million, the launch of additional products and CDMO services in the second half, and adjusted EBITDA breakeven in Q4 2025. Key upcoming initiatives include the ‘Health Pros' Professional Affiliate Program targeting 300 practitioners and influencers by year-end, the October launch of VINIA® BloodFlow Hydration Solution into the $13B+ electrolyte drinks market, and a new AI-enabled CDMO Discovery Phase service aimed at accelerating client projects and driving additional revenue. We believe that BioHarvest is well-positioned for near-term revenue growth and long-term scale due to its expanding consumer base, diversified product offerings, and a milestone-driven pipeline in the Contract Development and Manufacturing Organization (CDMO) sector.
- Valuation: BioHarvest appears well-positioned for a potential inflection point, with multiple new product launches poised to accelerate growth, broaden market reach, and reinforce its competitive positioning across high-growth business verticals. We view the increase in operating expenditures, particularly in marketing and research and development, as strategic investments to scale operations and expand the product pipeline. Over time, we expect it to support sustained revenue growth, meaningful margin expansion through operating leverage, and a potential upward re-rating of valuation multiples. We have updated our financial model to reflect the latest quarterly financial results, current liquidity position, and a revised comparable company analysis, reflecting an updated valuation of $18.00 per share, contingent on successful execution by the company.
About BioHarvest Sciences Inc.
BioHarvest Sciences Inc. specializes in botanical and cellular-based health solutions through its patented Botanical Synthesis technology, focusing on nutraceuticals, pharmaceuticals and CDMO services.
About Diamond Equity Research
Diamond Equity Research is an equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by BioHarvest Sciences Inc. for producing research materials regarding BioHarvest Sciences Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. As of 08/13/25, Diamond Equity Research LLC has been paid a total of $52,500 ($52,460 post bank charges) for research services, which commenced on 04/30/24. The payments, applicable to the initial year and not to renewals, were structured as two installments followed by subsequent quarterly upfront payments. The first installment of $17,500 ($17,490 post bank charges) was paid within a month of signing the agreement. The second installment of $17,500 ($17,490 post bank charges) was paid after a management content draft version of the initiation of coverage report was provided electronically to BioHarvest Sciences Inc., but prior to the public release of the final report. In addition, quarterly payment upfront payments of $8,750 were made for two quarters as of 8/13/25. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 08/12/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for BioHarvest Sciences Inc. Please review update report attached for full disclosures.
Contact:
Diamond Equity Research
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